Business Cash Flow Problem Working Capital | 7 Park Avenue Financial

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Business Cash Flow Solutions: The Other Side Of Cash Flow Financing And Working Capital Problem
How To Recover From Cash Flow Shortage Shock



 

YOUR COMPANY IS LOOKING FOR CASH FLOW SOLUTIONS!

SOLVING YOUR CASH FLOW PROBLEMS  

You've arrived at the right address! Welcome to 7 Park Avenue Financial

Financing & Cash flow are the  biggest issues facing business today

ARE YOU UNAWARE OR   DISSATISFIED WITH YOUR CURRENT  BUSINESS  FINANCING OPTIONS?

CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs

EMAIL - sprokop@7parkavenuefinancial.com

7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8

 

cash flow working capital calculation                working capital cash flow

Your business cash flow problem seeks a solution. The age-old situation of a working capital/cash flow shortage often is a ' shock ' situation to many Canadian business owners and financial managers.

 

CASH MANAGEMENT AND ASSET TURNOVER HELP CREATE PROFITS

 

Every business goal pretty well revolves around creating profits.  As that process works itself through your business you should be constantly trying to both manage cash and improve asset turnover.

 

The business owner's ability to manage, and finance working capital allows it to generate equity, pay taxes and employees, keep supplier short term relations positive, etc.

 

Calculations around working capital cash flow typically revolve around the relationship of current assets and current liabilities on your balance sheet.

 

WHAT IS THE OPERATING CYCLE

 

A great way to look at your business is to constantly be focusing on what we call the ' operating cycle '. It's essentially the ' journey ' that a dollar takes as it travels through your business.

 

Two drivers in understanding your cash and working capital are your:

 

1. Revenue recognition

 

2. Accounts payable management

 

Business owners should also check out their cash flow statement which is a key part of business financial statements allowing you to see cash from a ' where got /where gone ' perspective.

 

DON'T FORGET PAYABLES MANAGEMENT

 

While not often directly understood, most business owners /managers understand that managing payables is a key part of the cash cycle. You increase your cash from operations by delaying payables to the extent that you can, given you don’t want to damage supplier relations. Delaying payables, your major ' current liabilities ' asset is working capital management to the extent you can given vendor payment terms, etc.

 

FINANCING YOUR INVESTMENT IN  A/R AND INVENTORY

 

If your business isn’t a retail or online business you have an investment in accounts receivable. Numerous financing solutions exist to allow you to better access real cash, as opposed to the A/R and inventory build-up on your balance sheet that is not liquid.

 

Those solutions include:

 

A/R Financing


Inventory Loans


Access to Canadian bank credit


Non bank asset based lines of credit


SR&ED Tax credit financing


Equipment / fixed asset financing


Cash flow loans


Royalty finance solutions

 

Purchase Order Financing

 

Short Term Working Capital Loans/ Merchant Advance

 

Securitization

 

WHAT THOSE TEMPORARY CASH FLOW CRUNCHES!

 

If our businesses were a straight line with totally repeating ongoing transactions a lot of cash flow shortage shock would go away. Unfortunately, that is rarely the case, so seasonal and bulge situations often occur, often along the lines of the ' cash flow shock' we talk about.

 

The owner /manager's ability to forecast seasonality and bulges in business will always alleviate working capital shock .

 

WHAT TYPE OF BORROWING FACILITY DO YOU NEED?

 

At the end of the day, the most common solution to the business cash flow problem is the ability to ensure you have a borrowing facility in place that allows your company to address future cash flow uncertainty.

 

If your firm has profits, historical cash flow and acceptable financials chartered banks and business credit unions are the solutions for the long term.

 

FINANCING THE BALANCE SHEET

 

As long as you have business assets (receivables, inventories, equipment, orders/contracts) numerous non-bank solutions exist to allow you to feel that you have cash flow availability. Funding current assets is a key part of addressing a cash flow crunch.

 

CONCLUSION

 

If you're looking to avoid small business cash flow problems shock and ensure you have access to financing solutions that address the right stage your company is in ( start-up, mature, high growth, turnaround, etc ) to grow products and services, so seek out and speak to a trusted, credible and experienced Canadian  Business Financing Advisor who can assist you with your financing needs. It's all about the amount of cash you need to satisfy enough cash for funding your company.

 

Click here for the business finance track record of 7 Park Avenue Financial

 




7 Park Avenue Financial/Copyright/2021/Rights Reserved

' Canadian Business Financing With The Intelligent Use Of Experience '

 STAN PROKOP
7 Park Avenue Financial/Copyright/2024

 

 

 

 

 

Stan Prokop is the founder of 7 Park Avenue Financial and a recognized expert on Canadian Business Financing. Since 2004 Stan has helped hundreds of small, medium and large organizations achieve the financing they need to survive and grow. He has decades of credit and lending experience working for firms such as Hewlett Packard / Cable & Wireless / Ashland Oil